SAN FRANCISCO–Williams-Sonoma recorded comparable-store declines due to the “deterioration” in the macroenvironment for home goods, said Howard Lester, chairman and chief executive officer, during a conference call.
Net income for the second quarter ended Aug. 3 fell to $18.4 million from $26 million.
Net revenues decreased 4.6 percent to $819.6 million from the year-ago period.
Net revenues fell in the Pottery Barn and Pottery Barn Kids brands, partially offset by increases in the West Elm, Williams-Sonoma Home and Williams-Sonoma brands.
Executives offered updates on each store concept.
Lester said he expects the overall negative sales trends to continue, but singled out the Williams-Sonoma kitchenware brand as the concept that will buck the trend.
That’s because the chain has heavy “seasonal relevance” going into the holiday period, he said.
At Williams-Sonoma Home, its upscale furniture concept, new furniture lines and the introduction of tabletop were strong during the quarter.
With the launch of a new store in Manhattan’s Time Warner Center, the retailer will test a store-within-a-store concept, housing a Williams-Sonoma kitchenware store within a Williams-Sonoma Home store.
West Elm will make its international debut with its first store in Canada this year.
Meanwhile, Pottery Barn remains the weakest business and recorded double-digit sales decreases in the quarter.
The retailer will focus on expanding its e-commerce arm for the concept as well as its licensing business to help boost sales.
Upholstered furniture was one bright spot at Pottery Barn.
“We are increasingly concerned about this downward trend” in the home furnishings sector, Lester said, who sees it continuing into 2009.
As a result, Williams-Sonoma is taking a conservative posture, cutting capital expenditures, square footage growth and inventory levels, he said.